The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) Issue New Guidance on Fair Value Measurement
In the ongoing story of the U.S. Security and Exchange Commission’s potential full or partial adoption of the International Financial Reporting Standards (IFRS), today, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), the U.S.-designated organization in the private sector for establishing standards of financial accounting that govern the preparation of financial reports by non-governmental entities, which is recognized as authoritative by the Securities and Exchange Commission (SEC), issued new guidance on fair value measurement and disclosure requirements for IFRS and U.S. Generally Accepted Accounting Principles (GAAP).
As reported in the official press release, this “completes a major project of the boards’ joint work to improve IFRS and U.S. GAAP and to bring about their convergence.”
This agreement on fair value measurement “will improve consistency and reduce complexity by providing, for the first time, a precise definition of fair value and a single source of fair value measurement and disclosure requirements.”
IFRS requires that a company’s balance sheet recognize all allowable assets and liabilities under IFRS reporting standards, re-classify items that were previously classified under GAAP, and apply IFRS standards when measuring the value of all assets, which requires a certified appraisal.
Because Present Value LLC has performed machinery and equipment appraisals worldwide, we are very knowledgeable about IFRS accounting principles, and we aim to be at the forefront of the appraisal industry to better serve our clients and partners as they navigate these changes.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading
SEC: Companies Will Need Time to Adopt International Financial Reporting Standards (IFRS)
More International Financial Reporting Standards (IFRS) Information Is Available